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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Index Funds - As Safe as We Think?

Posted on Wednesday, October 9th, 2019 by Patrick CrawleyMichael Burry of The Big Short fame recently came out with his latest prediction for the US market, and this time the catalyst is based on the rise of passive investing.

“...passive investing has removed price discovery from the equity markets. The simple theses and the models that get people into sectors, factors, indexes, or ETFs and mutual funds mimicking those strategies -- these do not require the security-level analysis that is required for true price discovery”